The Securities and Exchange Board of India (Sebi) remains steadfast in its support for the newly implemented closing auction system. Despite initial trading fluctuations shaking investor confidence, the initiative is designed to enhance price discovery while aligning with international standards. However, a decrease in participation from proprietary traders has resulted in reduced liquidity. Sebi advocates for technology enhancements and a boost in order flows to ensure the system's effectiveness.

India's recently introduced closing auction system for stock prices is encountering early challenges, with traders raising alarms over erratic price fluctuations and confusion in…

According to the senior officials at SEBI, the new system is just facing teething issues and they are confident that it will improve as participation rises.

The new closing auction session (CAS) has rattled Dalal Street, with traders saying long-standing strategies are no longer working. SEBI, however, remains confident the system…

Sebi has defended the new Closing Auction Session (CAS), saying it offers better price discovery and execution certainty than the earlier VWAP-based system. The regulator said CAS…

Market closing auction needs time to settle down